Publications face tough times, niches grow
Editor’s note: This is part of a package running with the Dec. 25 and Jan. 1 print edition of the Phoenix Business Journal looking at the year ahead for industries from health care to employment and technology. For more on the print edition: jbertolino@bizjournals.com.
Traditional print media outlets in Phoenix faced a brutal climate in 2009, as advertising revenue and circulation plummeted, forcing layoffs, furloughs and deep budget cuts as they search for a sustainable business model.
Optimists believe the worst may be over, but with so many questions unanswered and relief nowhere in sight, what happens in 2010 is anyone’s guess.
The future of the East Valley Tribune hangs in the balance, but worried staffers there did get some good news in November after Tucson publisher Randy Miller sent a letter of intent to buy the struggling newspaper. A statement released by the East Valley Tribune said Miller would model the paper after the Tucson Explorer with a focus on local, suburban news.
The Tribune’s parent Freedom Communications Inc. filed for Chapter 11 bankruptcy protection in September and was planning on closing the paper at the end of the year if a buyer was not found.
Sources at the Tribune, who asked not to be identified, tell the Phoenix Business Journal the prospective buyer is expected to be approved by the courts, but likely not until after the New Year, so the paper will continue to operate until the bid is approved or rejected.
The media landscape will see even more changes in 2010, and for the first time in months, some good news is projected.
“It seems like the worst might be over,” said Tim McGuire, the Frank Russell chair for the business of journalism at Arizona State University’s Walter Cronkite School of Journalism and Mass Communication.
Independent Newspapers Inc. is planning to resurrect its Chandler and Gilbert publications in early January and launch a monthly newspaper in north Glendale in the first quarter.
The Dover, Del.-based chain, with regional headquarters in Scottsdale, has nine free-distribution papers Valleywide, from Apache Junction to Surprise.
McGuire believes some advertisers who abandoned traditional media will come back after not seeing the return on investment they expected through social media sites and campaigns. He said the environment here is ripe for startups and he expects numerous online ventures to spring up next year, citing opportunities in Scottsdale and professional sports.
Arizonaguardian.com, which debuted in January and caters to the State Capitol crowd and political insiders, has found some success in online niche journalism. To date, the site, which publishes about a dozen stories a day, has garnered 2,500 paying subscribers.
“We’re still here and have grown dramatically,” said political consultant Bob Grossfeld, president of Scottsdale-based The Media Guys Inc., who launched the site with former East Valley Tribune employees.
“We haven’t had to go get any kind of outside financing, which I have considered from the beginning to be significant and important,” Grossfeld said. “The force is still with us and we’re all pretty upbeat about it.”
While many lifestyle publications in this market are struggling to survive, 944 continues to expand, launching regional editions in October of its fashion, lifestyle and entertainment magazine in Atlanta and Detroit. With a circulation of 20,000 in each market, the new editions boost the company’s portfolio to nine regional publications with a national distribution of 3.4 million copies annually.
The expansion comes on the heels of 944 Media LLC’s acquisition of Six Degrees magazine in March. Six Degrees, which ceased distribution with the transition, is a monthly fashion, culture and entertainment publication with distribution in Atlanta, Detroit, Miami and Las Vegas.
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